Chinese company CMEC bringing allegations against the PDB for favouring another Chinese company, Harbin, and urged the PMO to ensure a fair and transparent bidding process in line with the government's Public Procurement Regulation (PPR), 2003.

In the June 28 bid, Harbin, which fails to meet PDB's criterion to qualify in the power scheme, filed a faulty but seemingly attractive bid beating its nearest competitor CMEC by $11 million and Indian competitor Bhel by $24 million.

But as required, Harbin did not submit any technical bidmaking its offer invalid. Yet the PDB accepted the offer. To cover up this major flaw, the project's director on July 9 sought Harbin's technical evaluation afterwards, although the bid was already closed.

The July 9 letter violates Regulation 31, clause (5) of the PPR which statestender clarifications which may lead to a change in the substance of the tender or in any of the key elements of the tender, shall neither be sought from the Tenderers nor the Tenderers are permitted to do so.

This prompted the Chinese CMEC to write to the Principal Secretary at the PMO against PDB's questionable handling of the project. "This is very unusual that a Chinese company is lodging a protest against another Chinese company in Bangladesh," quips a PDB source, "because both are owned by the Chinese government."

The CMEC notes in its letter that the July 9 letter from the PDB's project director violates Regulation 29 of the PPR (Public Procurement Regulation, 2003) which states, "Tenders received after the deadline for the submission shall be returned to the Tenderer unopened."

The CMEC adds, "if this disqualified bidder continues to be favoured by the BPDB in violation of rules and regulations…we will be left with no option other than to take necessary legal actions in a Court of Law."

Sources said following the June 28 bid closing, PDB's Chandpur project director and a deputy director of the Design 1 department had initiated the process of sending Harbin the July 9 letter in the pretext of seeking "Clarifications on Proposal". The letter was not authorised by the Chairman of the Technical Evaluation Committee or the PDB's Member (Generation) as was required.

According to the bidders of this project, other than lacking the legal basis, the Harbin offer is so tricky that the PDB will eventually lose more money to purchase extra spare parts for the power plant if Harbin builds it.

Harbin is the only power company to bag two power projects under the present government so far, although its experience does not meet the government's criterion. These two are PDB's Tongi 90 megawatt peaking power project and the Fenchuganj 90 megawatt power project.

The Tongi plant started operation one year behind the schedule a few months ago and it is frequently tripping due to technical flaws. The Fenchuganj project has just been awarded to it last month.

Industry insiders said that a section of bureaucrats, some PDB officials and some influential policymakers took a huge amount of money from the business lobby behind Harbin.